4 ms·
This makes complete sense, however, why would big banks not want to compete against SVB by establishing a smaller division that handles startups? Obviously, the
by bloodyplonker22 4y ago
This makes complete sense, however, why would big banks not want to compete against SVB by establishing a smaller division that handles startups? Obviously, the market is small compared to their usual markets, but there is still a lot of good money to be made.
- frankchn 4y agoIf the deposits are going on the parent bank's balance sheet, it would be subject to the same controls.
- icelancer 4y agoBank of America couldn't care less about our XX million/year revenues. Literally wouldn't take even basic requests for services. We moved to Keybank who has a much better rep with small businesses, and service (and pricing) has been orders of magnitude better. I'm assuming a similar thing was going on with SVB vs. other large banks.
- eastbound 4y ago> why would big banks not want to compete against SVB by establishing a smaller division that handles startups? Because such startups tend to, when they can’t raise funds easily (=nowadays), withdraw all their cash deposits at the same time (=what’s happening at SVB), which puts it in bankrupt. So, small market, but so much variance in deposits that it’s risky.